Union Warns Against 'Knee-Jerk' Reactions At ESB

A leading trade union has warned that reflex reactions at the State’s Electricity Supply Board (ESB) will play into the hands of the privatisation lobby.

The Government has agreed to sell off a minority stake in the semi-state company to meet commitments under the EU/IMF bailout deal.

Technical Engineering and Electrical Union (TEEU) said there was no question of balloting its members. TEEU said: "The last thing we need is a major industrial battle that will play into the hands of our competitors abroad or privateering vultures."

It is understood that TEEU is concerned about the pressure the Government is under from the international troika to sell off parts of State Energy Company.

But in signs of conflict between unions, Union Unite has said it strongly opposes the move and will ballot its members for industrial action.

According to The Irish Times Union Unite "maintains the Government’s plans to sell part of the ESB are not being driven by the EU-IMF deal but by Fine Gael within Government."

Union Unite said: "In an internal document that the original EU-IMF deal signed last December did not commit the Government to privatise State assets. For the Government to say that the EU-IMF deal required the sale of assets is intentionally misleading".

The Coalition confirmed on Thursday last that it would sell a minority stake in ESB. It is understood that the semi-state energy company will not be broken up. But it is not yet clear the percentage of the company to be sold or how much money will be raised.

The announcement followed an earlier claim by Ireland’s Energy Minister, Pat Rabbitte, that sell-off of state assets would not include the transmission and distribution networks of the ESB and Bord Gais.

Minister Rabbitte has received heavy criticism in the Dail following the announcement that the Government would indeed sell a minority stake in the electricity company.

Sinn Féin Energy Spokesman Martin Ferris has described the decision as an "absolute disgrace" and said: "we’re selling off the State assets one by one. This is the start – a decision taken in principle by this Government to sell one of the most lucrative parts of our State assets."

Meanwhile Fianna Fáil energy spokesman Éamon Ó Cuív said: "the minute a minority share of a State company is sold off, the company’s interest shifts from the national to the shareholders’ interest. Pressure then mounts inexorably to sell more of the company until it is fully privatised."

Minister Rabbitte has insisted, "there is no question of the Government handing over control".

(LB/CD)